New article Fundamentals of Statistics is published:
Every trader works using certain statistical calculations, even if being a supporter of fundamental analysis. This article walks you through the fundamentals of statistics, its basic elements and shows the importance of statistics in decision making.
What is statistics? Here is the definition found on Wikipedia:
"Statistics is the study of the collection, organization, analysis,
interpretation, and presentation of data." (Statistics). This definition suggests three main components of statistics: data collection, measurement and analysis. Data analysis
appears to be especially useful for a trader as information received is
provided by the broker or via a trading terminal and is already
Modern traders (mostly) use technical analysis to
decide whether to buy or sell. They deal with statistics in virtually
everything they do when using a certain indicator or trying to predict
the level of prices for the upcoming period. Indeed, a price fluctuation
chart itself represents certain statistics of a share or currency in
time. It is therefore very important to understand the basic principles
of statistics underlying the majority of mechanisms that facilitate the
decision making process for a trader.